Impulse-Response Analysis in a Simple DSGE Framework

This paper intends to perform a simple impulse-response analysis on the Romanian economy with the help of a DSGE model. The DSGE methodology has its origins in the Real Business Cycle Theory, and recently it became quite popular, especially after the seminal contribution of Smets and Wouters ([8]). I use a model with a single stochastic variable, namely technological progress, and focus on the response of the main macroeconomic variables to a technology shock. This endeavor is a first step in developing a DSGE model that can be used for policy purposes.